Contents

o Introduction
o Selecting Channel Members
Types of intermediaries
o Managing and motivating the channel
members
o Evaluating the channel members
o Bibliography

Introduction
After reviewing the channel alternatives and
deciding on the best channel design , the
company implements and manage the chosen
channel.
Then, channel management calls for selecting,
managing and motivating individual channel
members and evaluating their performance
over time.

Selecting channel members

Producers vary in their ability to attract qualified
marketing intermediaries.
The company selects the intermediaries by
looking the features which distinguishes the better
ones.
Some of the Characteristics are :
Each channel members years in business,
Other lines carried,
Growth and profit record,
Cooperativeness and reputation.

Contd.
Types of Intermediaries

Sales Agents

Retail Store

No. of other lines carried

Stores Customers

Size of sales force

Stores location

Quality of sales force

Future Growth potential

Managing and motivating Channel

Members
To manage and motivate the channel members to
do their best.
The companies practice strong partner
relationship management (PRM) to forge long
term partnership with channel members.
It meet the needs of both company and the
marketing partners.
In managing its channel, a company must
convince distributors that they can succeed by
working together as a part of cohesive value
delivery system.

Contd.
Nowadays, integrated high-tech PRM systems
are used to coordinate the whole channel
marketing efforts in the company.
E.g. Procter & Gamble and wal-mart work
together to create superior value for final
consumers.
They jointly plan merchandising goals and
inventory, inventory levels and advertising and
promotion plans.

Evaluating Channel Members

Producers check channel member performance
against some standards regularly.
The company which is doing its job well is
rewarded and the one doing its job poorly is
assisted or replaced on the basis of management
decisions.
Company may Requalify its intermediaries and
replace the weaker ones.
Finally, manufacturers need to be sensitive to
their dealers.

Bibliography
Search Engine : Google
Text book : Principles of Marketing
Philip Kotler,Gray Armstrong
12th Edition